Paz Group reports: 89% increase in total sales, which amounted to NIS 4.2 billion

Against the background of the never-ending rise in fuel prices to record numbers, the Paz Group has released its financial statements for the first quarter of 2022, which show the company's growth in all parameters. The reports show an 89% increase in total sales, which amounted to NIS 4.2 billion, compared with NIS 2.2 billion in the corresponding quarter last year. In addition, there was a 61% increase in gross profit, which amounted to NIS 536 million, compared with NIS 332 million in the corresponding quarter last year.
The report also shows that there was a 36% increase in operating profit, which amounted to NIS 106 million, compared with NIS 78 million in the corresponding quarter last year. In addition, the adjusted net profit in the first quarter was NIS 50 million, compared with NIS 13 million at the same time last year, and the reported profit was NIS 16 million, compared with NIS 30 million in the corresponding quarter last year. Excluding the refinery, the net profit in the first quarter stands at 59 million.
Financing expenses in the first quarter amounted to NIS 77 million, compared with NIS 38 million in the corresponding quarter, an increase of 103%, mainly due to the increase in the index in the quarter and its effect on the Company's index-linked bonds issued in 2016, 2017 and 2020.
Paz updates that in light of the unique situation in the world oil, fuel and gas market as a result of the war and the significant increase in refining margins, the company estimates that it is expected to record a significant improvement in adjusted net profit in the second quarter reports.
Paz Group CEO Nir Stern said: "Paz concludes a quarter of momentum in accordance with the group's strategy. In this quarter, food retailing established itself as a key anchor, with a adjusted gross profit margin of 35.6% of the highest in the food market. We enjoy continued growth in fuel consumption for transportation as a result of the removal of corona restrictions as well as real estate activity. The refining segment continues to weigh on the company's results even in the current quarter, without the refining the company would have recorded a net profit of NIS 59 million. We are expected to register a very significant improvement in the adjusted profit in the refining segment in the second quarter. "